Financial services firm Tranzact Financial Services (Tranzact) has expanded its DIY super distribution network after striking a deal with advisory group Gold Financial (Gold).
The group's DIY super, Tranzact Private Super, will be recommended by Gold's adviser network.
As part of the arrangement, Tranzact will join Gold as an adviser.
It has also agreed to subscribe for shares representing 2.4 per cent of the issued capital of Gold.
Gold, an independently-owned financial planning business, has a distribution network of 20 advisers.
The group said it plans to increase its adviser number substantially in the next 12 months.
The deal between Gold and Tranzact comes a week after the Tranzact announced it is in discussions with Grosvenor Financial Services (Grosvenor) over a possible merger of both businesses.
In a statement released to the Australian Securities Exchange on Friday, Tranzact chairman Philip Harry confirmed the group is in talks with its major shareholder Grosvenor, which owns 59.8 per cent of the business.
Harry said while no formal merger proposal has been put to either of the company's boards, the talks between Tranzact and Grosvenor are expected to continue.
In June this year Tranzact reported a net profit of $631,000.
Two weeks ago, Tranzact reaffirmed its commitment to growth by purchasing stakes in two planning practices.
It has acquired a 20 per cent stake in Wellington-based Cranfield Insurance and Investments, which has two advisers.
Tranzact has also acquired 20 per cent stake in HKF Rutherford Rede, based in Christchurch.
Tranzact has made seven acquisitions since its partnership for growth program began in New Zealand in April.
